VIVOCOM.KL WACC - Weighted Average Cost of Capital

The WACC of Vivocom Intl Holdings Bhd (VIVOCOM.KL) is 8.1%.

The Cost of Equity of Vivocom Intl Holdings Bhd (VIVOCOM.KL) is 8.20%.

The Cost of Debt of Vivocom Intl Holdings Bhd (VIVOCOM.KL) is 6.55%.

	Range	Selected
Cost of equity	6.60% - 9.80%	8.20%
Tax rate	16.90% - 26.70%	21.80%
Cost of debt	5.60% - 7.50%	6.55%
WACC	6.5% - 9.6%	8.1%

WACC

VIVOCOM.KL WACC calculation

Category	Low	High

Long-term bond rate	4.2%	4.7%
Equity market risk premium	5.9%	6.9%
Adjusted beta	0.4	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	9.80%

Tax rate	16.90%	26.70%
Debt/Equity ratio	0.05	0.05
Cost of debt	5.60%	7.50%

After-tax WACC	6.5%	9.6%


Selected WACC	8.1%

VIVOCOM.KL's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for VIVOCOM.KL:

cost_of_equity (8.20%) = risk_free_rate (4.45%) + equity_risk_premium (6.40%) * adjusted_beta (0.4) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.